Barron''s interviews James Turk about gold and mentions ESF

The BBC reports (see below) that the Japanese
government is planning to intervene openly
in the country's stock market to prop up prices.

Before Americans snicker too much at this,
remember that open intervention by the
government is at least more honest that the
surreptitious government intervention in the
markets that occurs in the United States, which,
when it happens elsewhere, the United States
has the nerve to denounce as "crony capitalism."

The Japanese prime minister, Junichiro Koizumi,
is planning to invest three trillion yen (15 billion)
of public money into the country's struggling stock
market, according to reports.

Japanese news agencies reported on Sunday that the
prime minister had bowed to pressure from his ruling
party, who are calling for contributions to save the
market from collapse.

The Japanese stock market, the Nikkei, hit a 19-year
low last week. It has sparked a number of calls for
emergency steps to combat deflation.

The Kyodo news agency said the government would
invest the money in exchange-traded funds (ETFs).
These are considered less risky than ordinary shares
because they invest in a variety of shares across a
sector or an index.

The news follows reports from the ruling coalition
parties on Friday that they would put together an
anti-deflation package within the next few days.
The proposals are to be put to the prime minister
before he leaves Tokyo for a visit to the United
States on Monday.

When the prime minister came into office last April,
he warned that the economic recession would worsen
and called for patience and sacrifice. But reports
suggest members of the ruling Liberal Democratic
Party (LDP) have now said the leader's prudence
was limiting the country's options. Japan has one of
the highest levels of public debt among industrial
nations, amounting to about 140 percent of gross
domestic product. The prime minister has
pledged to cut taxes by three trillion yen next year
to encourage firms to start spending again and boost
the economy.